NovatekNovatek Gas & Power Asia Pte. Ltd., wholly owned subsidiary of Russia’s gas major Novatek, a and Zhejiang Energy Gas Group Co., Ltd, a subsidiary of the Zhejiang Provincial Energy Group have signed a long-term LNG sale and purchase agreement for the LNG produced from the Arctic LNG 2 project.
The sale and purchase agreement follows on from the Heads of Agreement signed by parties on 2 June 2021 during the Saint-Petersburg International Economic Forum, and stipulates the supply of up to 1 mn tons of LNG per annum from the Arctic LNG 2 project for a term of 15 years. The LNG will be delivered on a DES basis to Zhejiang Energy’s LNG terminals in China.
Novatek Gas & Power Asia Pte. Ltd. has also signed a long-term LNG sale and purchase agreement for the LNG produced from the Arctic LNG 2 project with ENN LNG (Singapore) Pte. Ltd., a subsidiary of ENN Natural Gas Co., Ltd.
The agreement stipulates the supply of approximately 0.6 mn tons of LNG per annum from the Arctic LNG 2 project for a term of 11 years. The LNG will be delivered on a DES basis to ENN’s Zhoushan LNG Receiving Terminal in China.
“We have reached another milestone in successful marketing of NOVATEK’s share of LNG to be produced by our Arctic LNG 2 project,” Leonid Mikhelson, Chairman of the Novatek Management Board, noted. “This is another LNG SPA for delivery to the Chinese market, which is in line with our LNG strategy to expand sales to the Asia-Pacific region with its growing demand for clean-burning natural gas.”